Selecting somebody to administer your estate after your death is a crucial part of making your estate plans. You should feel sure that your choice can handle all of the tasks required of the position. Since the job of being a personal representative can take a lot of time and effort, your candidate might wonder about getting paid.
According to the Florida Bar, a personal representative has an entitlement to compensation in exchange for overseeing an estate. You may want to create a method to pay your representative before your death so that it does not become an issue.
Establishing pay without your involvement
An estate administrator generally receives compensation from the assets of the estate. However, dipping into estate assets could cause your heirs to lose out on some of their inheritance. The Florida Bar explains that individuals impacted by the compensation of your representative might work out a way to pay your representative. Since your beneficiaries have the primary stake in your estate, they will probably have a right to decide how much to pay the person who oversees your estate.
However, your representative might bypass your heirs and go to a judge to establish a method of payment. While your beneficiaries could just accept the amount ordered by the judge, they may also lodge objections. A court fight over pay could delay the probate process until a solution emerges.
How you could set up compensation
If you want to avoid legal conflict over how to pay your personal representative after you die, there are ways you can establish a payment method. You may describe your preferred way of compensation through your will. You can also write out a contract to provide for your representative. You and your estate administrator will sign the document and it will go into effect after your death.
Whoever you pick to handle your estate may feel better about taking on the position knowing that he or she will get paid for it. Settling this issue and not leaving it up to your beneficiaries and your representative to sort out could overall be a great benefit to your family.